Presentación de PowerPoint - Paytm

November 27, 2021

BSE Limited Dept of Corporate Services Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai 400 001

Scrip Code: 543396

PaYtm

National Stock Exchange of India Limited The Listing Department Exchange Plaza Bandra Kurla Complex, Mumbai 400 051

Symbol: PAYTM

Sub.: Earnings Conference Call - Presentation

Dear Sir/ Madam,

In continuation to our letter dated November 25, 2021 and in terms of regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed presentation made during the earnings conference call held on Saturday, November 27, 2021.

The Presentation will also be hosted on the Company's website, www.paytm.com.

Request you to kindly take the same on record.

Thanking you

A

C

Encl.: As above

ications Limited

& Compliance Officer

One 97 Communications Limited

[email protected]

Corporate Office-B 121, Sector 5, Noida 201301, India

T: +91 120 4770770 F +91 120 4770771 CIN: U72200DL2000PLC108985

Registered Office-136, First Floor, Devika Tower, Nehru Place, New Delhi - 110019

Quarter Ending September 2021

Earnings Presentation PaYtm

DisclaimerBy attending the presentation or by reading the presentation

slides you agree to be bound as follows:

This Presentation is prepared by One 97 Communications

Limited (“Company”) and is for information purposes only

without regards to specific objectives, financial situations or

needs of any -particular person and is not and nothing in it shall

be construed as an invitation, offer, solicitation,

recommendation or advertisement in respect of the purchase or

sale of any securities of the Company or any affiliates in any

jurisdiction or as an inducement to enter into investment activity

and no part of it shall form the basis of or be relied upon in

connection with any contract or commitment or investment

decision whatsoever. This Presentation does not take into

account, nor does it provide any tax, legal or investment advice

or opinion regarding the specific investment objectives or

financial situation of any person. Before acting on any

information you should consider the appropriateness of the

information having regard to these matters, and in particular,

you should seek independent financial advice. This

Presentation and its contents are confidential and proprietary to

the Company and/or its affiliates and no part of it or its subject

matter be used, reproduced, copied, distributed, shared,

retransmitted, summarised or disseminated, directly or

indirectly, to any other person or published in whole or in part

for any purpose, in any manner whatsoever.

The information contained in this Presentation is a general

background information of the Company and there is no

representation that all information relating to the context has

been taken care of in the Presentation. We do not assume

responsibility to publicly amend, modify or revise any

information contained in this Presentation on the basis of any

subsequent development, information or events, or otherwise.

This Presentation includes certain statements that are, or may

be deemed to be, “forward-looking statements” and relate to the

Company and its financial position, business strategy, events

and courses of action.

Forward-looking statements and financial projections are based

on the opinions and estimates of management at the date the

statements are made and are subject to a variety of risks and

uncertainties and other factors that could cause actual events or

results to differ materially from those anticipated in the forward-

looking statements and financial projections. Representative

examples of factors that could affect the accuracy of forward

looking statements include (without limitation) the condition of

and changes in India’s political and economic status,

government policies, applicable laws, international and

domestic events having a bearing on Company’s business, and

such other factors beyond our control.

Forward-looking statements and financial projections include,

among other things, statements about: our expectations

regarding our transaction volumes, expenses, sales and

operations; our future merchant and consumer concentration;

our anticipated cash needs, our estimates regarding our capital

requirements, our need for additional financing; our ability to

anticipate the future needs of our merchants and consumers;

our plans for future products and enhancements of existing

products; our future growth strategy and growth rate; our future

intellectual property; and our anticipated trends and challenges

in the markets in which we operate. Forward-looking statements

are not guarantees of future performance including those

relating to general business plans and strategy, future outlook

and growth prospects, and future developments in its

businesses and its competitive and regulatory environment.

These forward-looking statements represent only the

Company’s current intentions, beliefs or expectations, and no

representation, warranty or undertaking, express or implied, is

made or assurance given that such statements, views,

projections or forecasts in the Presentation, if any, are correct or

that any objectives specified herein will be achieved.

We, or any of our affiliates, shareholders, directors, employees,

or advisors, as such, make no representations or warranties,

express or implied, as to, and do not accept any responsibility

or liability with respect to, the fairness, accuracy, completeness

or correctness of any information or opinions contained herein

and accept no liability whatsoever for any loss, howsoever,

arising from any use or reliance on this Presentation or its

contents or otherwise arising in connection therewith. The

information contained herein is subject to change without any

obligation to notify any person of such revisions or change and

past performance is not indicative of future results.

This document has not been and will not be reviewed or

approved by a regulatory authority in India or by any stock

exchange in India. No rights or obligations of any nature are

created or shall be deemed to be created by the contents of this

Presentation.

Use of Operating Metrics

The operating metrics reported in this Presentation are

calculated using internal Company data based on the activity of

our merchants, consumers and other participants in our

ecosystem. While these numbers are based on what we believe

to be reasonable estimates of engagement, for the applicable

period of measurement, there are inherent challenges in

measuring usage across our large online, offline, in-store and

mobile presence. The methodologies used to measure these

metrics require significant judgment and are also susceptible to

algorithm or other technical errors. We regularly review our

processes for calculating these metrics, and from time to time

we may discover inaccuracies in our metrics or may make

adjustments to improve their accuracy, which can result in

adjustments to previously disclosed metrics. In addition, our

metrics will differ from estimates published by third parties due

to differences in methodology.

PaYtm

To bring Half-a-Billion Indians

to the Mainstream Economy through

Technology-led Financial Services

PaYtm PaYtm

Q2 FY 2022: Operational HighlightsQ2 FY 2022 in numbers

Contribution Profit

Revenue from

Operations

EBITDA

₹ 10.9 Bn +64% y-o-y

+592% y-o-y₹ 2.6 Bn

₹ (4.3) Bn

GMV ₹ 2.0 Tn +107% y-o-y Users and merchants growing on the platform

with increased engagement

Driven by 52% growth in non-UPI GMV

Consecutive quarters of 60%+ revenue growth

y-o-y

Large growth in Contribution Profit (Margin

increased from 5.7% in Q2 FY 21 to 24.0% in

Q2 FY 22)

Reduction in Indirect Costs as a percent of

revenues from 70% to 63%

Along with increased investments in

technology and merchant base expansion

Margin of (39%) vs

(64%) in Q2 FY 21

PaYtm

Continued momentum in Revenue growth, up 64%

y-o-y

5.0

6.9

8.4

1.7

2.0

2.4

Q2 FY21 Q1 FY22 Q2 FY22

64%y-o-y Growth

In INR Bn

Payment and Financial services revenue

grew by 69% y-o-y

• Driven by 52% y-o-y growth in non-UPI

GMV

• Increase in revenue from Financial

Services and Others (growth of over 3

times y-o-y)

• Acceleration of device deployment

Commerce and Cloud services grew 47%

y-o-y

• Rapid growth in advertising revenue

• Continued recovery in commerce

businesses

6.7

8.9

10.9

Payment and financial

services

Commerce and cloud

services

PaYtm

■ ■

GMV growth accelerated to 107% y-o-y in Q2 FY 22

947

1,121

1,268

1,469

1,956

360

832

Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Oct-20 Oct-21

• Non UPI GMV grew 52%

y-o-y

• Merchants that did not pay

any MDR for payments,

generated subscription and

merchant lending revenues

of over INR 550 million in

Q2 FY 22 (around 5% of

revenues from operations)

• GMV growth accelerating

in Q3 FY 22, with strong

performance in festive

season

In INR Bn

107%y-o-y Growth

131%y-o-y Growth

Notes:

1.Gross Merchandise Value (GMV) is defined as the rupee value of total payments made to merchants through transactions on our app, through Paytm

Payment Instruments or through our payment solutions, over a period. It excludes any consumer-to-consumer payment service such as money transfers

PaYtm

43.047.1

50.4 50.4

57.4

46.6

63.0


Monthly Transacting Users grew 33% y-o-y

• Increase in MTU over

last 12 months of 14.4

million

• Engagement on

platform: 55% y-o-y

growth in average

GMV per MTU

• Marketing expenses

is flat at 9% of

Revenues y-o-y

In Mn

Monthly

GMV per

user

33%y-o-y Growth 35%

y-o-y Growth

7,334 7,934 8,389 9,719 11,369 7,736 13,217

Notes:

1.Monthly Transacting Users are Unique users with at least one successful transaction in a particular calendar month. Quarterly figures are average for the period

2.Marketing expenses is Marketing and Promotional expenses excluding Promotional Cashback and incentives

PaYtm

0.3

0.6

0.8

0.9

1.3

0.4

1.4


Devices merchant base expanded by 1 mn in

the last 12 months

• Device merchants

continue to show higher

retention and higher

average spends

• 4% of device merchants

have already taken a loan

through our platform

• Recently announced bank

partnerships for POS

• Stronger momentum in

LFR market

In Million

1 Mn Devices Added

1 Mn Devices Added

Notes:

1.Total number of Paytm POS devices and Soundbox deployed at our in-store merchants

PaYtm

Value of loans disbursed through Paytm

reached $1 bn annualised in Oct-21

Performance

• 714% growth y-o-y in

number of loans

disbursed in Q2 FY 22

• 499% growth y-o-y in

value of loans disbursed

• 3 times growth y-o-y in

Financial Services and

Others revenue

Highlights

• Fully digital journey for all

products

• Tier 1 partners only:

Large Banks and NBFCs

349

881

1,381 1,433

2,841

228

1,301


714% y-o-y growth

472% y-o-y growth

Number of Loans (‘000)

Notes:

1.Sum of Personal Loans, Merchant Loans and Postpaid Loans disbursed by our financial institution partners

Q2 FY 21 Q3 FY 21 Q4 FY 21 Q1 FY 22 Q2 FY 22 Oct-20 Oct-21

2.1 4.7 6.9 6.3 12.6 1.2 6.3

Value of loans (₹ bn)

PaYtm

Contribution Profit margin growth of 592% y-o-y

0.4

2.3

2.6

Q2 FY21 Q1 FY22 Q2 FY22

In INR Bn

Contribution

Profit

Contribution

Margin

• H1 FY 2022 Contribution Profit of ₹5.0

billion2 has exceeded full FY 2021

Contribution Profit of ₹3.6 billion

• High margin monetization kicking in at

scale (Lending, advertising)

• PG cost reduced from 0.52% of GMV to

0.34% of GMV y-o-y

5.7% 26.2% 24.0%

Notes:

1.Contribution margin is the percentage margin derived by dividing contribution profit by revenue from operations.

2.The contribution profit and contribution margin of the first quarter of FY 2022 excludes ₹110 million of activity based benefit which is non-recurring (mentioned on page 423 of prospectus)

2

PaYtm

Indirect expenses (% of Revenues) reducing along with

investments in People, Marketing and Technology

9% 9% 9%

40%35% 34%

11%

12% 10%

9%

9%10%

70%

65% 63%

Q2 FY21 Q1 FY22 Q2 FY22

Marketing Employee (ex ESOP) Software, cloud and data centre Other expenses

• Marketing costs maintained at

9% of revenues (same as last

year), even as we have

increased MTU by 14.4 mn in

last 12 months

• Employee expenses are lower

as a % of revenues than last

year, even as we invest more in

technology and merchant (and

devices) growth

As a % of Revenue

Notes:

1.Marketing and promotional expense excluding Promotional cashbacks and incentives

PaYtm

■ □ □ □

2.33.0

3.5

2.4

3.3

4.0

0.3

0.5

0.9

Q2 FY21 Q1 FY22 Q2 FY22

Payment and Financial Services Revenue grew 69% y-o-y

with 52% y-o-y increase in non-UPI payment volumes

69%y-o-y Growth

In INR BnPayment services to Consumers (up 54% y-o-y)

• Driven primarily by increase in non-UPI

payment usage on our consumer platform

Payment services to Merchants (up 64% y-o-y)

• Growth in non-UPI GMV with payment

gateway and devices merchants - INR 16 Bn

of run-rate revenues (>$200m run-rate)

Financial Services and Others (up 250% y-o-y)

• Grew from 4% of total revenues in Q2 FY 21

to 8% in Q2 FY 22 due to growth in Lending

and Wealth

Payment Services

to Consumers

Payment Services

to Merchants

Financial Services

and Others

5.0

6.9

8.4

PaYtm

■ ■ ■

1.2

1.51.6

0.5

0.5

0.8

Q2 FY21 Q1 FY22 Q2 FY22Cloud Commerce

Commerce and Cloud Services Revenue grew 47%

y-o-y with continued recovery in Commerce

47%y-o-y Growth

In INR Bn

• Cloud: Rapid growth in advertising

revenue

• Commerce: Continued recovery in

ticketing revenues from the dip due to

2nd COVID wave in Q1 FY 22

1.7

2.0

2.4

PaYtm

■ ■

Summary of Key Trends

• Growth of Payments revenues and profitability

due to growth of payment volumes from non-UPI

instruments (including Paytm Payment

Instruments) and payment services to merchants

• Recovery of high-margin commerce business,

and growth of Cloud due to ramp up of

advertising

• Increase of Financial Services revenues driven

by huge ramp up in Lending

• Efficiently increase users, merchants and GMV

• Strong momentum in revenue growth to continue;

64% growth y-o-y in Q2 FY 2022

• Step Jump in Contribution Margin achieved, with

clear trends towards continued y-o-y

improvements

• Indirect Expenses as a % of Revenues is going

down

• Well funded for growth opportunities ahead

Trends in our Operating and Financial PerformanceTrends in our Businesses

PaYtm

Thank you

PaYtm

Annexure

PaYtm

Reconciliation of Non GAAP MeasuresAdjusted EBITDA

Particulars (in INR Millions)

Quarter Ended Half Year ended

Sep-21

(Unaudited)

Sep-20

(Unaudited)Y-o-Y

Jun-21

(Audited)Q-o-Q

Sep-21

(Unaudited)

Sep-20

(Unaudited)Y-o-Y

Loss for the period / year (A) (4,735) (4,367) nm (3,819) nm (8,553) (7,211) Nm

Income Tax expense (B) 20 84 (76)% 31 (36)% 51 43 19%

Exceptional items (C) - - - (24) nm (24) (80) nm

Share of profit / (loss) of associates / joint ventures (D) (66) (196) nm (121) nm (187) (162) nm

Loss before share of profit/(loss) of associates/joint ventures,

exceptional items and tax (E=A+B-C-D)(4,649) (4,087) nm (3,643) nm (8,291) (6,926) nm

Finance costs (F) 102 83 23% 97 6% 199 185 8%

Depreciation and amortization expense (G) 504 490 3% 409 23% 913 893 2%

Other income (H) 481 942 (49%) 572 (16%) 1,053 1,924 (45%)

Initial Public Offer expenses (I) 76 - - - na 76 - nm

EBITDA (J=E+F+G-H+I) (4,448) (4,456) nm (3,709) nm (8,156) (7,772) nm

Share based payment expense (K) 193 189 2% 390 (50%) 583 294 98%

Adjusted EBITDA (L=J+K) (4,255) (4,267) nm (3,319) nm (7,573) (7,478) nm

Revenue from Operations (M) 10,864 6,639 64% 8,908 22% 19,772 12,151 63%

Adjusted EBITDA Margin % (N=L/M) (39.2%) (64.3%) 2511 bps (37.3%) (191 bps) (38.3%) (61.5%) 2324 bps

PaYtm

Metric Definition

GMV GMV is the rupee value of total payments made to merchants through transactions on our app, through Paytm

Payment Instruments or through our payment solutions, over a period. It excludes any consumer-to-consumer

payment service such as money transfers.

Monthly Transacting User (MTU) Unique users with at least one successful transaction in a particular calendar month

GMV / MTU Average GMV per transacting user in a period

Contribution Profit Contribution profit is a non-GAAP financial measure. We define Contribution profit as revenue from operations less

payment processing charges, promotional cashback & incentives expenses, connectivity & content fees, contest,

ticketing & FASTag expenses & logistic, deployment & collection cost of our businesses.

Adjusted EBITDA Adjusted EBITDA is a Non-GAAP financial measure. We define Adjusted EBITDA as our restated loss for the year,

before depreciation & amortization expense, income tax expense, share based payment expense, finance costs,

other income, restated loss for the year from discontinued operations, exceptional items, IPO expenses & share of

restated profit/(loss) of associates/joint ventures.

Definitions for Metrics & Key Performance Indicators PaYtm

Presentación de PowerPoint - Paytm

Documents